Correlation Between Opthea and Marker Therapeutics
Can any of the company-specific risk be diversified away by investing in both Opthea and Marker Therapeutics at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Opthea and Marker Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Opthea and Marker Therapeutics, you can compare the effects of market volatilities on Opthea and Marker Therapeutics and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Opthea with a short position of Marker Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Opthea and Marker Therapeutics.
Diversification Opportunities for Opthea and Marker Therapeutics
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Opthea and Marker is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Opthea and Marker Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marker Therapeutics and Opthea is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Opthea are associated (or correlated) with Marker Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marker Therapeutics has no effect on the direction of Opthea i.e., Opthea and Marker Therapeutics go up and down completely randomly.
Pair Corralation between Opthea and Marker Therapeutics
Considering the 90-day investment horizon Opthea is expected to under-perform the Marker Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, Opthea is 1.5 times less risky than Marker Therapeutics. The stock trades about -0.12 of its potential returns per unit of risk. The Marker Therapeutics is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 352.00 in Marker Therapeutics on September 4, 2024 and sell it today you would earn a total of 12.00 from holding Marker Therapeutics or generate 3.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Opthea vs. Marker Therapeutics
Performance |
| Timeline |
| Opthea |
| Marker Therapeutics |
Opthea and Marker Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Opthea and Marker Therapeutics
The main advantage of trading using opposite Opthea and Marker Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Opthea position performs unexpectedly, Marker Therapeutics can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Marker Therapeutics will offset losses from the drop in Marker Therapeutics' long position.| Opthea vs. Molecular Partners AG | Opthea vs. MediciNova | Opthea vs. Anebulo Pharmaceuticals | Opthea vs. Champions Oncology |
| Marker Therapeutics vs. Lumos Pharma | Marker Therapeutics vs. Exicure | Marker Therapeutics vs. Protagenic Therapeutics | Marker Therapeutics vs. Pmv Pharmaceuticals |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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